IntroductionMergers and Acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.

DefinitionThe main idea: - “One plus one makes three”. The equation is specially based on Merger or Acquisition. The key principle behind buying a company is to create share holder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies together. 1. Acquisition:

An acquisition is the purchase of one company by another company. Acquisitions are actions through which companies seek economies of scale, efficiencies and enhanced market visibility. All acquisitions involve one firm purchasing another - there is no exchange of stock or consolidation as a new company. Acquisitions are often congenial, and all parties feel satisfied with the deal. Acquisition has become one of the most popular ways since 1990. Companies choose to grow by acquiring others to increase market share, to gain access to promising new technologies, to achieve synergies in their operations, to tap well-developed distribution channels, to obtain control of undervalued assets, and a myriad of other reasons. So, because of the appeal of instant growth, acquisition is an increasingly common way to expand.

2. Mergers:The combining of two or more entities into one is called merger. Therefore, a merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated.

What makes Mergers and Acquisitions?
These motives are considered for making of mergers and acquisitions: 1. Economy of scale:This refers to the fact that the combined company can often reduce its fixed costs by removing duplicate departments or operations, lowering the costs of the company relative to the same revenue stream, thus increasing profit margins.

2. Economy of scope:
This refers to the efficiencies primarily associated with demand-side changes, such as increasing

3. Synergy:
Better use of complementary resources.

4. Taxes:
A profitable company can buy a loss maker to use the target's loss as their advantage by reducing their tax liability.

5. Geographical Diversification: This is designed to smooth the earnings results of a company, which over the long term smoothen the stock price of a company, giving conservative investors more confidence in investing in the company.

6. Empire building:
Managers have larger companies to manage and hence more power.

7. Increased revenue or market share:
This assumes that the buyer will be absorbing a major competitor and thus increase its market power (by capturing increased market share) to set prices.

8. Cross-selling: For example, a bank buying a stock broker could then sell its banking products to the stock broker's customers, while the broker can sign up the bank's customers for brokerage accounts. Or, a manufacturer can acquire and sell complementary products.

9. Resource Transfer: Resources are unevenly distributed across firms and the interaction of target and acquiring firm resources can create value through either overcoming information asymmetry or by combining scarce resources....

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...and tactics are adopted by either multinational companies or regional firms in order to obtain global marketshares as much as possible. Mergers and Acquisitions (M&amp;A) are one of methods for a corporation to grow and expand its global business. Globally, the value of M&amp;A increased by 19%, up to USD 2.25 trillion in 2010, with amount of USD378 billion contributed by the emerging markets contributed.
(http://www.ibtimes.com/ma-activity-highest-2007-more-predicted-2011-251301)
Some factors, however, such as credit availability, level of volatility and uncertain macro-economy, affect M&amp;A activity levels which have been closely joined with the state of the equity markets.
This essay is to make an introduction of M&amp;A terminology and its types; the reasons and motives for and barriers and limitations against M&amp;A; how to finance M&amp;A; the variety of strategies and tactics adopted by the acquirer and target; a range of corporation valuation techniques related to company consolidation; how M&amp;A activities impact on stakeholders involved; understanding the morale behind a corporation’s choice to divest part of its business and the various routes to divestment. After that, two cases of M&amp;A activities are to be discussed, which explain how the above theoretical knowledge have been achieved in practice.
a) Terminology and types of Mergers and...

...Mergers and Acquisitions in Global Scenario
By
Shahwar Gul
In the post- liberalization era, the demand for intense growth and development in business has paved the way for the companies to undergo the process of amalgamation, takeover, reconstruction and re-organization. Mergers and acquisitions have become imperative tools in structuring a new generation of organizations with the clout and resources to withstand and compete on a global basis.
The field of M&A has undergone drastic and dramatic changes over the previous decades. The daily newspapers are filled with case studies of M&A, corporate re-structuring, changes in ownership structures and struggles for corporate control. This subject matter plays an active role under the dominance of business enterprises on a global platform.
Keywords: Mergers and Acquisitions, globalization, Scenario
INTRODUCTION
Universally being accepted as a corporate strategy, financial and management policy; Mergers and acquisitions have been practiced worldwide in myriad industries and sectors within and across the nations’ boundaries for guarding and shielding the corporate, business, marketshare and market power. In developed nations like in USA, Japan and European nations, mergers and acquisitions are a regular phenomenon of combinations and...

...﻿Introduction
Merger and acquisition both are strategic decision and an aspect of corporate strategy. One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies - at least, that's the reasoning behind merger and acquisition.
Most histories of merger and acquisition begin in the late 19th U.S. However, mergers coincide historically with the existence of companies. In 1708, for example, the East India Company merged with an erstwhile competitor to restore its monopoly over Indian trade. In 1784, the Italian Monte dei Paschi and Monte Pio banks were united as the Monti Reuniti. In 1821, the Hudson's Bay Company merged with the rival North West Company.
Merger
The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. Basically, when two companies become one. This decision is usually mutual between both firms. A merger can happen when two companies decide to combine into one entity.
According to Webster’s Business Dictionary-
“A blending of two or more companies by...

...Economics 331: Industrial Organization
By: SMRITY SHAH
BBA sec B
Topic: Mergers and Acquisitions
Introduction
Mergers and Acquisitions is referred to the aspect of corporate strategy, Finance and Management dealing with the purchase, sale, isolating and combining of different firms and similar entities that can help the enterprise grow rapidly in its sector or location of its origin or in a different sector or at a entirely new location without creating a subsidiary, a child entity or creation of a joint venture. Mergers and acquisitions are big part of the corporate finance world. Particularly in terms of the ultimate economic terms, the peculiarity between a “Merger” and “Acquisition” has become hazy in numerous respects. Some of the motives been used in a Merger or Acquisition are:
1. Economies of Scale: with the help of economic of scale, the combined company can try to reduce its fixed cost by removing the duplicate operations, activities and lowering the cost of the company in relative to the same revenue stream and therefore increasing the net profit margins. Therefore, when a company receives economic of scale it lowers the average cost per unit through increased production since fixed cost are shared over an increased number of goods.
2. Economy of scope: the cost advantage that a company gets when firm...

... These two companies have been staunch competitors in the marketplace for several years and the employees of Company A are resentful of integrating with their former rival (Argosy, 2013).
Company B’s Goals:
Managing the Communication and Information Sharing:
The company wants to keep employees informed of how the acquisition will impact them.
The company wants to be sure that they provide enough information to satisfy the employees, but not provide so much that the employees feel overwhelmed.
The company wants to be sure that the timing of the communication matches their execution of the changes within the two organizations.
Managing the Consolidation and Changes:
There is no doubt that there will be layoffs as a result of the acquisition. The company wants to do what is best for the acquisition in a way that inflicts the least amount of harm to the existing employees.
The company wants to make the decisions about who to layoff in the fairest way possible.
The company wants to try and limit exposure to potential discrimination (age and gender) stemming from the layoffs.
Managing the Relocations of Some the Employees:
Another impact of acquisitions is that employees may be asked to relocate in order to maintain employment in the newly formed organization.
The company wants to manage the expenses and potential disruption with the relocations.
The company wants to assess relocations verses hiring new...

...Mergers and Acquisitions Paper
How does a merge or acquisition impact a business? What benefits or consequences will a merge or acquisition have for a business? Will there be financial risks involved due to merging or acquiring a business from another country? How can the risks be mitigated? These are just a few of the concerns that an organization must consider whether they are merging or acquiring or being acquired or merged with. This paper will attempt to show the effects of mergers and acquisitions on organizations.
A merger is two organizations combining to become one and the organization that is acquiring, assumes the assets and liabilities of the organization that was merged with. An acquisition is a takeover of an organization by purchase of their assets or common stock. A merge or acquisition may impact an organization in may different ways. The main ways that an organization is impacted is with finances and assets. This can be a positive or negative impact if not researched properly and thoroughly. There are three ways that an organization can be acquired. They are by a merge of all the assets and liabilities from a target firm into the acquiring firm, purchase of stock of the target company also known as a tender offer, and the purchase of individual assets of the target.
A merger should make sense for the acquiring...

...OF BUSINESS
MASTERS OF BUSINESS ADMINISTRATION
COURSE: FINANCIAL SEMINAR
COURSE CODE: DFI 605
SEMESTER: JANUARY-APRIL 2012
CLASS PRESENTATION: GROUP NINE PRESENTATION
TOPIC: MERGERS AND ACQUISITIONS, MODERN THEORY OF CORPORATE CONTROL
COURSE INSTRUCTOR: MIRIE MWANGI
GROUP MEMBERS:
STUDENT | REGISTRATION NUMBER |
BANCY WANGUI | D61/60453/2011 |
ISAAC NYAMORA | D61/66960/2011 |
JACQUELYNE M. ODERO | D61/62818/2010 |
JOSEPHINE M. ODERA | D61/63410/2010 |
MATTHEWS WAUYE | D61/63904/2010 |
SAMUEL GATHUA | D61/64121/2011 |
TIM SILOMA | D61/60464/2011 |
ABSTRACT
In today’s globalised economy, mergers and acquisitions (M&amp;A) are being increasingly used the world over, for improving competitiveness of companies through gaining greater marketshare, broadening the portfolio to reduce business risk, for entering new markets and geographies, and capitalizing on economies of scale. This document is structured in three parts. The introductory section provides an overview of the definition of mergers and acquisition, motives and the types of mergers and acquisitions.
Part one of the document provides the historical evolution of the mergers and acquisition activity in the United States, explaining the environment in which they took place. I then explain the theoretical motivations for...